With regard to zinc price trends this week, an SMM survey shows that 50% market players expect nickel prices to rebound strongly in the short term. The result of second round of election in Greece shows that the Democratic Party supporting credit tightening policies won the election, and will likely form a collation government with Pasok. Supported by the election result, the euro against the dollar climbed to the highest level since May 22. A weak dollar helped LME nickel prices advance above USD 17,000/mt.

Approximately 30% of market players, however, understand that nickel prices will drop, as the European debt issues remain unresolved. Those market players believe that debt issues in Spain and Italy are new concerns, despite the easing of problems in Greece. The yield of Spanish 10-year government bonds rose to 7%, and meanwhile that of Italian government bonds also surged. In addition, the pessimists note that any downward room for the dollar will be limited, and may rebound this week, and this will weigh down nickel prices.

The remaining 20% views that nickel prices will continue to fluctuate this week. The result of second round of election in Greece will favor markets in the short term, but market attention is now shifted to the upcoming US Federal Reserve interest rate meeting to be held late this week. LME nickel prices gained after the election result in Greece, but with the lack of further uprising momentum. Hence, they expect LME nickel prices to move between USD 16,700-17,000/mt this week.

With regard to zinc price trends this week, an SMM survey shows that 50% market players expect nickel prices to rebound strongly in the short term. The result of second round of election in Greece shows that the Democratic Party supporting credit tightening policies won the election, and will likely form a collation government with Pasok. Supported by the election result, the euro against the dollar climbed to the highest level since May 22. A weak dollar helped LME nickel prices advance above USD 17,000/mt.

Approximately 30% of market players, however, understand that nickel prices will drop, as the European debt issues remain unresolved. Those market players believe that debt issues in Spain and Italy are new concerns, despite the easing of problems in Greece. The yield of Spanish 10-year government bonds rose to 7%, and meanwhile that of Italian government bonds also surged. In addition, the pessimists note that any downward room for the dollar will be limited, and may rebound this week, and this will weigh down nickel prices.

The remaining 20% views that nickel prices will continue to fluctuate this week. The result of second round of election in Greece will favor markets in the short term, but market attention is now shifted to the upcoming US Federal Reserve interest rate meeting to be held late this week. LME nickel prices gained after the election result in Greece, but with the lack of further uprising momentum. Hence, they expect LME nickel prices to move between USD 16,700-17,000/mt this week.